The Nigeria Labour Con
gress (NLC) President, Ayuba Wabba, yesterday in Abuja called for total review of budgeting system in the country, saying that the current process was outdated.
Wabba made the call when he featured on a media Forum.
“We have said importantly that our process of budget making is faulty and therefore, it needs to be reviewed totally; we have sent very clear signals; it has to start early.
“In South Africa, the budget is subjected to public debates; the details will be made public; people will come in for public hearing.
“If you are doing road, they ask you why you are doing road from A to B instead of this road; they will look at the importance of the project to the people and how basic it is; why people need to support it.
“There will be a very good debate, there will be input from organised labour and that is what I think we should do now.’’
He said that since the present administration won the election on the change mantra, the need to change the budgeting process was imperative to avoid a situation where individuals would continue to be blamed.
“If they will want to bring about change, it is also to change the process. By changing the process, it means, let it go to the people; service is about the people.
“If you want to do a railway from point A to B, you will tell me the reason and we will interrogate and people will support it.
“When people support it, it is then that they will own the project and therefore, it will be beneficial to them.’’
The NLC president said that organised labour would continue to engage the Federal Government on policies and programmes that would benefit the people.
On other efforts to support the Federal Government agenda, he said that the congress had overtime campaigned for good governance and the fight against corruption.
He said that the union had made specific recommendations on how best to institutionalise good governance in the country.
“We also came up with recommendations of some laws that need to be reviewed such as having a specialised court that will actually address the issue of corruption.
“We also said that the issue of the immunity clause should be reviewed not only on criminal cases but also for civil cases as this is the trend globally.
“Just like the case of South Africa recently, where the president was made to face criminal charges of corruption.’’
He said that NLC had also called for the diversification of the economy, provision of stable power supply, water, among others to drive development in the country.
“So, where policies need to be interrogated, we have to continue to do that to defend the interest of the workers,’’ Wabba added.
Lawmakers Want CBN To Halt Naira Devaluation
The House of Representatives has asked the Central Bank of Nigeria (CBN), to urgently put in place a policy to check further devaluation of the naira to the United States dollar and other international legal tenders.
The House decried that while the Nigerian currency was losing value, others in Africa were appreciating.
At the plenary on Wednesday, the House unanimously adopted a motion moved by the Deputy Chairman of the Committee on Pensions, Mr Bamidele Salam, which warned the CBN of the implications of further devaluing the naira.
The motion was titled, ‘Matter of urgent public importance on the need for the Central Bank of Nigeria to urgently put in place monetary policies to stop the free fall of the naira against the dollar and other international legal tenders’.
Salam recalled that the CBN governor, Godwin Emefiele, while addressing the Bankers’ Committee at a summit on the economy in Lagos earlier in February, informed the committee about the naira devaluation against the dollar.
The lawmaker also quoted Emefiele as saying at the summit that the official exchange rate stood at N410 to the dollar.
“That is 7.6 per cent weaker than the rate of N379 published on the central bank’s website,” Salam noted.
According to the lawmaker, while the value of the naira relative to the dollar had declined by nine per cent in the last six months, the South African rand and Ghanaian cedi had appreciated by 11.4 per cent and one per cent, respectively.
Salam also recalled that the CBN adopted multiple exchange rates in 2020, in a bid to avoid an outright devaluation.
He noted that the official rate used as a basis for budget preparation and other official transactions differed from a closely controlled exchange rate for investors and exporters known as the Nigerian Autonomous Foreign Exchange Rate Fixing Methodology.
He stressed that the naira had traded in a tight range between N400 and N410, while the NAFEX rate was different from the parallel market, considered illegal by the CBN, where the naira closed at 502.
Salam said, “The House is concerned that devaluation is likely to cause inflation because imports will be more expensive any imported goods or raw material will increase in price; aggregate demand increases, causing demand-pull inflation. Firms/exporters have less incentive to cut costs because they can rely on the devaluation to improve competitiveness.
”The concern is that the long-term devaluation may lead to lower productivity because of the decline in incentives.
”The House is further concerned that devaluation of the naira makes it more difficult for Nigerian youths especially in the IT sector, whose businesses are online and must necessarily transact businesses in the US dollars.
“It also reduces real wages. In a period of low wage growth, a devaluation that causes rising import prices will make consumers feel worse off “.
Four West African Countries To Buy Nigeria’s Unutilised Electricity
Four West African countries, Niger, Togo, Benin and Burkina Faso, are collaborating to buy the unutilised power produced in Nigeria.
The Chairman of the Executive Board of the West African Power Pool (WAPP), Sule Abdulaziz, disclosed this at the WAPP meeting on the North core project in Abuja, on Wednesday.
Abdulaziz, who is also the acting Managing Director of the Transmission Company of Nigeria (TCN), said the four countries were collaborating to make the power purchase from Nigeria through the North core Power Transmission Line currently being built.
He explained, “The power we will be selling is the power that is not needed in Nigeria.
“The electricity generators that are going to supply power to this transmission line are going to generate that power specifically for this project. So, it is unutilised power”.
He said Nigeria was expecting new generators to participate in the energy export for the 875km 330KV Northcore transmission line from Nigeria through Niger, Togo, Benin to Burkina Faso.
Abdulaziz said, “In addition, there are some communities that are under the line route, about 611 of them, which will be getting power so that there won’t be just a transmission line passing without impact”.
The WAPP chairman noted that the project, funded by World Bank, French Development Council and the African Development Bank, had recorded progress, adding that the energy ministers would be addressing security issues for the project at another meeting in Abuja.
He said, “Nigeria has the greatest advantage among these countries because the electricity is going to be exported from Nigerian Gencos (generation companies).
“So, from that, the revenue is going to be enhanced and a lot of people will be employed in Nigeria”.
The Secretary-General, WAPP, Siengui Appolinaire-Ki, said the cost of the project was about $570 million, adding that part of the investment in each country would be funded by that particular nation.
According to him, the countries in the partnership, including Nigeria, are also being supported by donors.
He said the funding agreement was ready as partner countries were awaiting the disbursements.
Appolinaire-Ki, however, said the donor agencies had said they needed a Power Purchase Agreement between the buying and the selling countries to be executed before releasing the fund.
Reps Probe N275bn Agric Loans Under Yar’Adua, Jonathan, Buhari
The House of Representatives has resolved to investigate the disbursement of loans and credit facilities by the Federal Government in the agriculture sector since 2009.
The period under review covers the administrations of the late Umaru Yar’Adua, Goodluck Jonathan as well as the present President, Muhammadu Buhari.
The resolution was sequel to the unanimous adoption of a motion moved by Hon. Chike Okafor at the plenary last Wednesday, titled ‘Need to investigate disbursements of all agricultural loans/credit facilities to farmers from 2009 to date to enhance national food security’.
Okafor said, from 2009 to date, the Federal Government had approved the disbursement of funds to farmers in various schemes to the tune of over N275billion, ranging from Commercial Agricultural Credit Scheme to the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, to help farmers improve agricultural production and guarantee food security in Nigeria.
The lawmaker also noted that apart from increasing food supply, the schemes were to grant agricultural loans to large and small-scale commercial farmers to lower the prices of agricultural produce, generate employment and increase foreign exchange earnings.
He said, “The House is aware that since the approval, most farmers have not been able to access the loans due to stringent requirements being demanded by banks from prospective borrowers and the alleged siphoning of over N105billion meant for farmers by management of NIRSAL.
“The House is concerned that food production has not attained the expected level, despite the approval of over N275billion facilities to farmers.
“The House is worried that the projected diversification of the economy from oil production to agricultural production and increase in agricultural output, food supply and promoting low food inflation will not be achieved if farmers are unable to access loans meant to increase agricultural production”.
Adopting the motion, the House resolved to mandate the Committee on Banking and Currency to “investigate disbursements and compliance of all agricultural loans/credit facilities to farmers from 2009 to date to enhance national food security in the country”.
- Business5 days ago
‘OPEC Member Countries Lost $trn To Oil Price Plunge In Two Years’
- Politics5 days ago
Bill To Unbundle NIPOST Passes 3rd Reading In Senate
- Business5 days ago
Insecurity May Cause Food Shortages In Nigeria – AFAN
- Politics5 days ago
LG Polls: Lagos PDP Concludes Primaries
- Politics5 days ago
Electoral Act: Rumbles In Senate Over Card Reader, Results’ Electronic Transmission
- Niger Delta5 days ago
Yenagoa Law School: Ijaw Group Commends Wike’s Magnanimity
- Politics5 days ago
Zamfara Gov Reinstates Three Commissioners
- Business5 days ago
NDE Trains Unemployed Graduates On Entrepreneurship Skills